Linear Gold is a well funded junior exploration company that has very prospective properties in Mexico, the Dominican Republic, and Brazil.
It has 27.918 million shares outstanding
$25.0 million in cash
The Mexican property:Ixhuatan
The Campamento Deposit is a high-grade, gold-silver deposit situated at or near surface. The deposit contains 1,041,000 ounces of gold in the measured and indicated categories with and additional 704,000 ounces inferred (at a 0.50 gram per tonne cut-off). The total silver content in the deposit has been calculated at 4,400,000 ounces in the measured and indicated categories with an additional 2,260,000 in the inferred category.
Click for detailed resource estimate information
Click for complete list of drillhole assays
At the close of Friday, January 30, 2009 the share price was $0.95 asigning to the company a market cap of $26.522 million.
Since there is $25.0 million in cash, all properties are literally thrown in for $1.522 million including the 1.0+ million ounces of gold, and 4.4 million ounces of silver at the above mentioned deposit. Plus the partner for this property is Kinross Gold. For Kinross Gold to earn a 70% percent interest in the Mexican property, they have to spend $15.0 million by September, 2009. Pay to Linear Gold $100.0 million, and another up to $15.0 million depending on the size of the discovery, within 90 days of a decision to build a mine.
Thus, even if we were to count the $100.0 million due from Kinross and the $25.0 million in the treasury, the company is worth at least $4.47 and it doesn't even include the remaining 30% stake in the Ixhuatan property or any other properties in Brazil and the Dominican Republic!
